Asian stocks plunged on Tuesday, tracking a broad market sell-off as stronger-than-expected US retail sales data for March dampened hopes of an interest rate cut from the Federal Reserve this year, as reported by Reuters.
The upbeat retail figures, coupled with ongoing geopolitical tensions in the Middle East, overshadowed positive economic news from China.
China’s GDP grew 5.3 per cent year-on-year in the first quarter, exceeding analyst expectations. However, concerns lingered as data revealed continued weakness in areas like property investment and retail sales.
Major Asian markets felt the selling pressure. China’s blue-chip CSI300 index fell one per cent, while Hong Kong’s Hang Seng Index dropped two per cent.
The broader MSCI Asia-Pacific index outside Japan tumbled over two per cent to a two-month low.
The risk-averse mood is expected to persist in Europe, with futures pointing towards declines in major indices.
US stocks also closed sharply lower on Monday due to rising Treasury yields and tensions between Iran and Israel.
Oil prices edged higher amid escalating tensions in the Middle East.
US crude rose 0.64 per cent to $85.96 per barrel, while Brent crude gained 0.61 per cent to $90.65 per barrel.
Meanwhile, gold prices remained relatively stable, with spot gold adding a modest 0.2 per cent to $2,387.05 per ounce.
